Coinbase’s head of institutional strategy states that comprehensive legislation regarding the crypto market structure will take longer to finalize than the rules for stablecoins, but he remains optimistic that bipartisan momentum will propel the bill to completion by 2026.
John D’Agostino informed CNBC that the need for regulatory clarity overseas and the increasing exodus of talent from the US create pressing demand for establishing federal frameworks this year.
The Senate Banking Committee has set a markup for the CLARITY Act on January 15, following months of delays due to internal disagreements regarding decentralized finance oversight, standards for token classification, and restrictions on stablecoin yields.
D’Agostino recognized the intricacies involved, stating that “market structure is complicated” and that he has dealt with issues that are structurally simpler than those related to market structure bills.
Regulatory Progress Grows Despite Technical Challenges
D’Agostino stressed that market structure legislation serves as essential infrastructure for the growth of crypto, warranting lengthy negotiations despite the industry’s frustrations.
“The rest of the world is advancing,” he stated, referencing Europe’s MiCA framework and regulatory clarity in regions like the UAE as competitive threats necessitating congressional action.
Although prediction markets assign varying chances to the bill’s passage in the first quarter, D’Agostino expressed significant optimism grounded in global competitive dynamics.
“We observed a massive exodus of talent, people, intellectual capital, and technological advancements outside of the US in 2024,” he elaborated.
The same urgency that propelled stablecoin legislation through the GENIUS Act will eventually resolve remaining disagreements once lawmakers return from their break, he argued.
The current draft of the CLARITY Act gives the CFTC primary oversight over non-security fungible tokens that satisfy decentralization criteria, while also establishing SEC jurisdiction for tokens linked to ongoing management efforts and revenue-sharing characteristics.
Lobbyists analyzing recent amendments suggest that the bill would classify DeFi front-end operators and fee-collecting DAOs as registrants while maintaining safe harbors for immutable smart contracts lacking upgrade keys.
Members of the Banking Committee from both parties have conveyed to industry organizations their desire to prevent a recurrence of previous cycles where House-passed digital asset bills languished in the Senate without committee votes.
A straightforward markup resulting in a bipartisan manager’s amendment would pave the way for 60 votes on the floor. However, staff anticipate aggressive amendments concerning DeFi custody, sanctions enforcement, and crypto-native stablecoin rewards in retirement accounts.
Crypto funds, including $BTC and $ETH, lost $952M as regulators delay the Clarity Act, although $SOL and $XRP still experienced inflows. #Ethereum #ClarityAct #Bitcoin https://t.co/Cla1X1nayc
— Cryptonews.com (@cryptonews) December 22, 2025
Stablecoin Framework Offers Blueprint for Broader Reform
D’Agostino highlighted the success of the GENIUS Act as proof that comprehensive regulatory clarity facilitates institutional adoption.
“Since the GENIUS bill has been absorbed and thoroughly considered, and people understand how to comply with it, we are witnessing just the beginning of stablecoin launches,” he remarked.
The stablecoin framework has enabled major financial institutions such as JP Morgan and Citigroup to enter the market, while allowing companies with robust consumer ecosystems to experiment with branded payment tokens.
D’Agostino anticipates that market structure legislation would create similar opportunities for non-financial companies aiming to integrate blockchain technology into their supply chains and customer interactions.
In addition to facilitating traditional institutions, comprehensive frameworks mitigate regulatory risks for companies operating at the forefront of crypto technology.
D’Agostino emphasized that clarity in market structure enables “institutions outside of the crypto-native space, who may be uncomfortable with taking unique regulatory risks, to feel very confident in engaging their customers on a blockchain or crypto platform.”
Banking Sector Resistance Poses Threat to Stablecoin Innovation
While commending the passage of the GENIUS Act, D’Agostino cautioned that traditional banking interests are persistently advocating for restrictions on stablecoin yields during ongoing negotiations in the Senate.
Coinbase’s chief policy officer Faryar Shirzad recently raised alarms that limiting rewards could diminish the global competitiveness of dollar-pegged stablecoins, particularly as China prepares to make its digital yuan interest-bearing starting January 1, 2026.
D’Agostino dismissed banking claims that yield-bearing stablecoins jeopardize deposit-funded lending models.
Banks currently earn approximately 4% on reserves held at the Federal Reserve with minimal incentive to share returns, he clarified, while stablecoin platforms view passing yields to users as a fundamental product value.
Senator Cynthia Lummis reinforced the industry’s urgency, stating that “unclear regulations have driven digital asset companies offshore” and asserting a bipartisan commitment to establishing clear jurisdiction and robust protections.
For far too long, unclear rules have pushed digital asset companies offshore. Our market structure legislation changes that by establishing clear jurisdiction, strong protections, and ensuring America leads the way. Let’s get this done!
— Senator Cynthia Lummis (@SenLummis) January 2, 2026
Despite unprecedented government shutdowns disrupting the legislative schedule, D’Agostino maintained that competitive pressures from jurisdictions offering regulatory certainty will compel congressional action once members reconvene.
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